Bare Metal Cloud Mar

iCrowdNewswire   Nov 2, 20207:00 AM ET

Bare Metal Cloud market size was valued at $1.58 billion in 2019, and it is estimated to grow at a CAGR of 18.96% during 2020-2025. The growth is mainly attributed to the increasing demand for high performance and flexible cloud services drives the market growth. The bare metal cloud enables high performance computing, as no virtualization is used. It also delivers high performance cost effective solutions for organizations, by replacing the virtualization of cloud with a single dedicated tenant server and this propels the market growth.

Type – Segment Analysis

Small and medium sized enterprises held the major share of 62.83% in 2019. Bare metal cloud is ideal choice for small and medium sized enterprises as they are cost effective hosting solution, capable of automating and scaling allocated resources rapidly. They are designed to carry high intensity workloads with business intelligence and database apps thereby driving the market growth.

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Industry Vertical – Segment Analysis

BFSI is the fastest growing segment in Bare Metal Cloud market and estimated to grow at a CAGR of 19.08% during forecast period 2020-2025. In BFSI sector, as there is necessity of scalable storage infrastructure, there is high adoption of bare metal cloud in order to ensure high performance in real-time trading. The critical requirement for high security and data protection during online banking, secure transactions, and access violations has increased the demand for bare metal cloud solutions.

Geography- Segment Analysis

North America dominated the Bare Metal Cloud market in 2019 with a market share of 35.28%, followed by Europe and APAC owing to the presence of large number of players. In addition to these, early adoption of advanced technologies in industries which drives the market growth. Growing adoption of secure cloud services significantly drive the bare metal cloud market. Furthermore, increasing demand for virtual data storage and secured host services drives the market growth in this region.

Drivers –Bare Metal Cloud Market

Shift from CAPEX model to OPEX

Many companies are focusing on usage of IT solutions owing to rising cost pressure. OPEX model doesn’t have any fixed upfront cost as compared to CAPEX model and it is available in pay per use model. This attracts the end users which set to push the market growth. The client only pay for what they use on a monthly or hourly basis. Bare Metal Cloud helps organizations avoid the costly mistakes of owning technology that does not meet their needs all while preserving capital. Thus, the growing adoption of bare metal cloud services is poised to drive market.

Increasing adoption of hybrid bare metal cloud

Rising adoption of hybrid based bare metal cloud is set to drive the market growth as hybrid bare metal cloud system provides both on premises and cloud based bare metal data center storage systems for efficient operations. Hybrid bare metal cloud offers flexibility to the organizations in selecting a solution to choose the right cloud deployment model for each workgroup. Bare metal cloud helps in eliminating the shortcomings of both public and private cloud by delivering the high-speed performance of dedicated physical hardware. This set to drive the market growth.

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Challenges – Bare Metal Cloud Market

High investment and maintenance

One of the major challenge with bare metal cloud is high initial investment since the business is the only client, thus bears the full costs of the servers. Additionally, protecting and upgrading a multi tenancy server is easier since multiple customers servers are all upgraded at once from one centralized point. But it is more difficult if each customer had their own server like in the case of bare metal due to high maintenance. This hampers the bare metal cloud market.

Market Landscape

Technology launches, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Bare Metal Cloud market. Bare Metal Cloud top 10 companies include IBM Corporation, Internap Corporation, Oracle Corporation, Packet, CenturyLink, Inc, Rackspace Hosting Inc, CenturyLink, Limestone Networks Inc, Datapipe Inc, Scaleway, INAP and others.

Acquisitions/Technology Launches

In April 2020, Oracle had launched new advanced bare metal E3 standard which supports 128 OCPUs (128 cores, 256 threads) and 2 TB of RAM and has 100 Gbps of overall network bandwidth. Introduction of new standard solutions is set to drive the Company’s bare metal cloud market share.

In September 2019, INAP had announced about multiyear expanded bare metal environment for multinational B2B Technology Company. This set to increase the Company’s market share.

Key Takeaways

North America dominated the Bare Metal Cloud market in term of revenue in 2019 owing to the presence of major number of players.

Growing demand for high performance cloud service and increasing workloads which require consistent cloud performance is set to drive the market growth.

Increasing compliance challenges have increased the adoption of bare metal cloud market.

High investment is the major challenge that hampers the market growth.

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